Lay of the land — Brooks Chadwick figures out how to develop property during recession

by
Sheri Kellbusiness@mdjonline.comThe Marietta Daily Journal

May 04, 2013 11:55 PM | 5681 views | 0 | 16 | |

Staff/Laura Moon
In December 2008, Todd Thrasher, current managing partner of Brooks Chadwick Capital, found a subdivision property in east Cobb. Along with former Presley partner Dave Clapper, the two convinced a bank to give them 70 percent of the loan needed to purchase the property. The risk paid off — they quickly sold the subdivision to Lennar, the third largest builder in the country, which was starting an Atlanta division.

EAST COBB — Todd Thrasher, managing partner of east Cobb-based Brooks Chadwick Capital, took the scenic route to find his passion for real estate. As a college theology major, he was four credits shy of obtaining a degree when missionary work and unexpected events kept him from graduating. But it helped him define his career.

Thrasher’s family moved from Birmingham, Ala., to east Cobb when he was 7 years old. After high school, he moved around to several colleges while doing missionary work in China and the Philippines.

“I spent some time smuggling Bibles into China,” he said. “I kind of went out and saw the world.”

His last collegiate stop was Columbia International University, a Bible college in Columbia, S.C.

“I wanted a Biblical world-view that I could then apply to business,” said Thrasher.

In 1999, a plane crash took the life of a close family friend and owner of Leader Enterprises, an Orlando-based sports management agency, as well as professional golfer Payne Stewart, among four others. Thrasher’s life took a drastic turn when he was asked to leave college and work for the company as it rebuilt from the tragedy. Shortly after, Thrasher’s father purchased the company and moved it to Atlanta.

Thrasher stayed with the company three years, managing the endorsements division. During this period, he developed a friendship with well-known Atlanta developer Tom Cousins, whom he now calls his mentor.

“He is the one that stoked the passion of real estate in me,” he said.

In 2004, Thrasher came across a valuable piece of property in east Cobb and took Presley Property Development Company to see the site. He was hired on the spot to do land acquisitions for the company that was developing 300 residential lots a year in metro Atlanta at the time.

In October of 2008, when the real estate market collapsed, the company shut its doors.

“We had just had our first child (Brooks Chadwick), and we had three months’ worth of severance and no prospects,” Thrasher said.

“I had the idea that it would be great to put together a fund to go out and buy some of these distressed properties — but how I was going to get there, I didn’t really know,” he recalls.

In December, with money running out, he found a subdivision property in east Cobb. Along with former Presley partner Dave Clapper, the two convinced a bank to give them 70 percent of the loan needed to purchase the property.

Raising the remaining 30 percent from friends, on Dec. 31, 2008, they closed the deal. Thrasher made $70,000 at closing, and Brooks Chadwick was founded.

“It was not the best of times. … When your back is against the wall, you have no choices.”

The risk paid off — they quickly sold the subdivision to Lennar, the third largest builder in the country, which was starting an Atlanta division.

“That deal turned out to be very successful.”

In February 2009, Steve Edison Builders joined the company. In 2010, they started developing and building homes in east Cobb.

“We were the first to start developing in the horrific environment we were in,” he said. “We were able to flip the deals so quickly, our reputation spread to investors,” he said.

Today the company uses mostly high-wealth investors and almost no institutional financing.

“We’ve grown substantially every year,” he said. Recently, Roy Jones, a fourth partner joined as general counsel.

Since 2008, the company has purchased 25 properties and owns five properties. It had revenues of $30 million last year. The company has branched into Alpharetta, Dunwoody and is looking at acquisitions in Johns Creek, Roswell, Forsyth and Buckhead.

Lennar Homes has remained a client since the first subdivision.

Todd Jones, Lennar’s division president, considers himself fortunate to have forged the relationship with Thrasher.

“Todd’s ingenuity and integrity in the industry, combined with his knowledge and vast network of contacts, allows them to create value on projects that most people may shy away from,” said Jones.

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